What Does a Health Care Administrator Do?

Health care administrators manage health care facilities, which gives them wide-ranging influence within the world of medicine. The leadership that they provide sets the future course not only for the facilities they manage but also for the health care system as a whole. Managing a health care facility today is the close equivalent to managing an entire city. It’s a dynamic environment of specialized groups that have both direct and indirect relationships with one another, and at times, competing interests.

To lead a health care facility requires careful budgeting, tough decision-making, and above all else, the ability to maintain the respect and cooperation of diverse interest groups that are sometimes adversely affected by an administrator’s decisions. Within this environment, a health care administrator is responsible for establishing health care standards, making strategic policy decisions and implementing the personnel management procedures necessary to support his vision. In addition to the internal leadership they provide, health care administrators are leaders within the greater community as well. They partner with other health care organizations, comply with government regulations, advocate and testify on behalf of health care policies, and maintain campuses that are significant to communities.

Although the professional titles of health care administrators vary according to their place of employment, the significance of the work they accomplish – and the interdisciplinary skill set required to do so – is universal. Healthcare administrators have the challenge and opportunity to deliver high quality health care within an appealing work environment while contributing positively to the greater community at large. There are few positions within the health care arena as exciting, versatile and rewarding as that of the health care administrator – who has the opportunity to lead, inspire and enact policies of far-reaching consequence.

Workplace Details

About 40 percent of health care administrators work within hospitals. Other employment settings include physicians’ offices, small or large group medical practices, long-term nursing care facilities, home health care agencies, and outpatient clinics or centers. Within these settings, they manage whole facilities or a specific department. Most health care administrators work full-time business hours, but those responsible for 24-hour facilities should expect to work on an urgent or emergent basis during off hours including weekends, nights or holidays.

Salary and Job Outlook

State

Average Wage

California

$122800

New York

$135640

Texas

$104740

Ohio

$99000

Pennsylvania

$99260

Hover over any state to explore local income and job growth data.

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When calculating salaries, the U.S. Bureau of Labor Statistics reports that the median annual wage for all health care administrators is $96,540. For the bottom ten percent of earners, the median salary is $56,970, while the median income of the top ten percent is $172,240.

Higher salaries are usually awarded to professionals with the most responsibility and those who oversee larger practices or facilities. For example, according to the BLS May 2016 Occupational Outlook Handbook, administrators overseeing smaller facilities with fewer than six physicians could expect a median compensation closer to $87,542. Those overseeing larger facilities could see a median salary of $104,340.

More employment opportunities are expected in the area of medical practice management than in other areas of health care administration because of the trends toward outpatient care and an overall increased demand for health care services. There is also expected to be an increase in the need for long-term care administrators because of aging baby boomers. The U.S. Bureau of Labor Statistics reports job growth for all health care administrators to be 17% from 2014 to 2024, which is considered much faster than average for all occupations.

Compare Salaries by City

10th Percentile

50th Percentile

90th Percentile

New York City NY Median Pay

$118190 Per Year

$56.82 Per Hour

Los Angeles CA Median Pay

$109500 Per Year

$52.64 Per Hour

Steps to Become a Health Care Administrator

1

Earn a bachelor's degree.

A bachelor’s degree (usually requiring four years) is the typical entry-level preparation needed for health care administration jobs. Some employers, however, will promote from within or hire other professionals with related experience (such as nurses) who are ideal for an administrative role because of their direct health care knowledge. Subspecialties are sometimes available within undergraduate programs, though this is more common in grad school.

Complete a graduate program.

For high-level executive positions, a graduate education (two to three years) is usually the starting point, and in other cases it will be preferable. This means attaining an MBA, or a different type of master’s degree, or a doctorate in health administration. Subspecialties are often available in graduate programs. These include long-term care administration, health care services, or health information management.

Some graduate programs in health care administration have real-world internships as part of the curriculum. Students often spend time in an ancillary or assistant role under the mentorship of a health administrator, or participate in a special project designed to benefit a facility or health care practice.

3

Determine whether you need a license.

In most areas of health care administration, a license is not needed. One notable exception is for administrators of long-term care nursing facilities and some assisted living facilities. State license requirements vary from state to state, but a licensing examination and proof successful completion of an educational program are typical elements of the licensing process.

Explore avenues for career advancement.

Healthcare administrators usually choose to move up the executive ladder. For instance, a manager of a department may become an executive in charge of multiple departments or an entire facility. If a health care administrator doesn’t already have it, a graduate education is sometimes necessary for this kind of advancement. Experienced health care administrative professionals are also ideal for taking on consultant roles, becoming educators, or becoming policy makers in a public service or government capacity.

Employers hiring healthcare administrators will typically accept a wide range of college majors, especially if the candidate has some healthcare experience. If you’re new to the field, consider majoring in:

Healthcare administration

Public health administration

Business administration

Health information management

Another option is a health professions degree like nursing — especially if you plan to work clinically for a few years before moving into administration.

Many universities and online schools offer health administration bachelor’s degrees. If you choose the online option, it’s best to find a program that offers some face-to-face instruction in the form of classes, seminars, or an internship.

A word of caution: with the exception of CAHIIM, which accredits health information management programs, there’s no accreditor specializing in healthcare administration bachelor’s degrees. This sometimes makes it difficulty to judge a program’s quality. Public and private non-profit colleges generally offer the best educational value. You can also check with employers or working healthcare administrators in your area to learn which schools are most respected.

Healthcare administration students at the bachelor’s level often study:

Healthcare ethics

Looks at values conflicts and philosophical issues related to healthcare, including right to live, informed consent, and human experimentation.

Healthcare program evaluation

Practice measuring the quality and effectiveness of healthcare programs, including patient safety and clinical outcomes.

Healthcare quality management

Study methods to understand and improve an organization’s operational performance, including patient flow, safety, and satisfaction.

Healthcare marketing

Learn how organizations identify and reach potential partners, including patients, providers, and payers.

MASTER'S DEGREE

Additional 2–3 years after bachelor's degree

The American College of Healthcare Executives (ACHE) recommends that healthcare administrators hold a master’s degree at minimum. Many employers prefer candidates with graduate degrees, especially large organizations that are hiring for executive positions.

Healthcare administration master’s candidates typically major in:

Health administration (MS, MHA)

Public health (MPH)

Health services administration (MHSA)

Business administration (MBA) with a healthcare concentration

It’s also possible to combine a clinical degree with an administrative one (for example, medicine or nursing with an MBA).

ACHE emphasizes the importance of face-to-face instruction in health administration education. However, many schools offer an executive option to meet the needs of working professionals. This track typically combines blocks of face-to-face instruction with online learning.

At the master’s level, healthcare administration students can expect to study:

Healthcare finance

Learn how organizations fund their operations and use their profits to improve business.

Healthcare delivery systems

Looks at the structure and function of healthcare organizations, including policy, reimbursement, regulation, and community considerations.

Healthcare law

Study how the legal system is used to resolve health-related disputes, including torts and contract and employment conflicts.

Health information technology

Learn how information systems are used to manage patient information, gather data, meet reporting requirements, and inform healthcare business decisions.

Most master’s-level programs also include field experience in the form of clinical rotations or an administrative residency. Many healthcare administration master’s students complete an optional one-year fellowship after graduation.

Keys to Success as a Health Care Administrator

Necessary Skills and Qualities

Analytical and versatile

Change is always in the air when it comes to the provision of health care. Healthcare administrators must be adept at adjusting to new developments in health care law, technology and policies. They need to be flexible, creative, analytical and organized in putting policy changes into practice.

Communication

Healthcare administrators must be able to effectively communicate with people at all professional levels, specialties and roles. Part of doing this well is keeping abreast of what goes on in their department or facility, and knowing details of all employees’ daily responsibilities.

Professionalism

Because they are leaders and often operate as the “face” of their organization, health care administrators must always maintain professionalism in demeanor and appearance.

Credentialing Information

The following organizations offer voluntary certification for healthcare administrators. Candidates must meet eligibility requirements (usually a combination of educational and work experience) and pass an exam.

American College of Health Care Administrators (ACHCA) offers credentials for nursing home and assisted living administrators. Certification requires two years licensure (where required by the state) and 40 hours of continuing education.